RockTenn to acquire Simpson Tacoma paper mill

North America-based consumer packaging firm RockTenn and forest products business Simpson Lumber Company have signed an agreement whereby RockTenn will acquire the Simpson Tacoma Kraft paper mill for approximately $343 million (€246.6 million).

The Tacoma Kraft Mill located in the US state of Washington, operates a 55MW biomass cogeneration facility that was completed in 2009 and sells electricity under a long-term contract. In 2013 the mill produced 465,000 tonnes on two paper machines and two pulp dryers that made various paper grades including containerboard, specialty kraft paper and pulp.

RockTenn has committed to invest $60 million in the mill during the next three years and has also entered into a seven-year woodchip supply contract with Simpson Lumber Company.

The transaction is subject to customary closing conditions and regulatory approvals.